The Irish Stock Exchange has warned investors to be vigilant to potential scams targeted at shareholders in Irish companies and says that if an offer sounds too good to be true, it probably is.
Fraudsters contact investors unexpectedly and offer to buy their shares at prices higher than current market values in these ''boiler room scams''. These people obtain investor information and contact details by accessing publicly available shareholder lists.
The ISE says that while cold-calling by phone is the most common form of contact, they may also use email, post, face-to-face contact or approach investors at seminars.
It says the false offer to buy shares will likely come with a request for bank details or money up front as a bond or other form of security. This will be accompanied by a guarantee to pay back the money involved if the sale does not go ahead. The ISE warns that this advance fee is part of the scam.
The Irish Stock Exchange is urging investors to be vigilant and to take a note of the person and or organisation that has contracted you.
People can also check if the company or individual is properly authorised to operate as an investment firm in Ireland by the Central Bank by contacting the bank on 01-2244000 or the list of authorised firms is on www.centralbank.ie.
It also urges people to report any unsolicited approaches in relation to shares to the company's registrar and to obtain independent advice from a qualified advisor or stockbroker.
